Commercial Car Insurance for Realtors

Commercial car insurance for realtors may sound like overkill to many in the real estate profession. And it could seem like a waste of money to others who work in realty and brokerage firms. But in all reality, it is a necessity and something that all real estate professionals should have for their vehicles. In fact, Iowa auto insurance laws and the laws of many other states can sometimes require liability insurance for commercial purposes. Many people across different professions including ours are under the impression that the name on the vehicle title is all that matters when it comes to the distinction between personal and commercial auto insurance coverage. But this is not at all true.

Title Owner and Car Insurance

This is a popular notion across many industries. People who subscribe to this notion say that since they are the title owners of their cars, there is no need to carry a commercial insurance policy on them. The belief or supposition is that only vehicles titled and registered in business names need commercial policies. It is true that business names on the title pretty much cinch the need for commercial car insurance. If a car is titled and registered in a business name, it virtually guarantees that the car or truck is being used for business purposes. And this is really at the heart of requirements for commercial auto insurance.

Commercial policies exist to protect drivers and auto owners who use their cars in the course of their normal business proceedings. Think of your car as a tool you use to help you do your job. People in many industries across the country would have a very hard time getting their work done without their vehicles. This is probably truer of realtors than of workers in almost any sector.

We need our vehicles to bring us to and from the office, to make it to showings, and to get to other realty offices to close on homes with our clients. And this is just a small sampling of places we might need to go in an average day on the job. Over time, real estate pros take their cars all over creation in the course of their work. Vehicles to real estate agents are like mobile offices. And this is where the need for commercial auto insurance comes in unmistakably clear.

Vehicle Use Determines Insurance Needs

Whether you or someone else is the title owner of a car, and whether it is privately owned or held by some sort of company, any vehicle that is regularly used for business purposes needs commercial insurance. Now, there are certainly common sense guidelines involved here. If you need to borrow your husband's car for the day because yours is being serviced, there is no need to switch coverage, as insurance companies normally will work with us in these types of cases.

But if you get into an accident with a client in your vehicle and your auto insurance company finds out you were using the car for business purposes, they will likely question the claim if it is filed under a personal auto policy. In the majority of cases auto insurers will reject such claims on the grounds that personal car policies do not cover business use. And sometimes an insurance company will go so far as to cancel your coverage, leaving you scrambling for a replacement policy (likely at a higher cost thanks to the cancellation on your insurance record).

The biggest thing we need to remember as motorists and auto owners is to think in terms of how we use a vehicle, not in terms of vehicle size or type. If you work out of your car and have customers riding around with you all day, you have to have commercial car insurance, or you may be paying for nonexistent coverage and wasting your money.

Advantages of Commercial Auto Insurance

It is not entirely bad news for real estate agents that we need to get commercial coverage for our cars. In fact, these policies are superior to personal ones. They offer much higher limits for liability car insurance protection, something that can really come in handy if you get into an accident and your client ends up suing you for auto negligence.

Drivers can save money on commercial car policies by shopping online to find the best deals. You can also cut back on your rates by making sure you get all of the discounts you've got coming. Most discounts available on personal auto policies can also be added to commercial ones. If prices are still too high, consider a higher deductible, but keep in mind that policy holders are responsible for paying that entire deductible amount in the event of a claim. So don't get too carried away with it. Save money the best you can and protect yourself with a quality commercial car insurance for realtors policy.